China and the United States are meeting for the second round of their Strategic and Economic Dialogue (SED) in Beijing on May 24-25. US Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner lead a team of almost 200 officials at this annual event. The talks are expected to focus on a range of regional and multilateral issues from the economy to security concerns.

Two major issues will top the agenda: the sinking of the South Korean warship Cheonan, and the Euro zone crisis.

Kurt Campbell, assistant secretary for East Asia and Pacific Affairs, has made it clear that the United States supports South Korea firmly and unequivocally. Secretary of State Clinton's stop-by in Japan and South Korea on her way to China gave her an opportunity for close consultation with America's regional allies.

Both China and the U.S. have a common interest in maintaining peace and stability on the Korean Peninsula. But different historical perspectives and diplomatic approaches towards the North and the South mean the two sides will need to work hard to achieve a consensus. There is room for collaboration but challenges still remain.